Correlation Between Berkshire Hathaway and CONSOLIDATED
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By analyzing existing cross correlation between Berkshire Hathaway and CONSOLIDATED EDISON N, you can compare the effects of market volatilities on Berkshire Hathaway and CONSOLIDATED and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Berkshire Hathaway with a short position of CONSOLIDATED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berkshire Hathaway and CONSOLIDATED.
Diversification Opportunities for Berkshire Hathaway and CONSOLIDATED
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Berkshire and CONSOLIDATED is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Berkshire Hathaway and CONSOLIDATED EDISON N in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONSOLIDATED EDISON and Berkshire Hathaway is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Berkshire Hathaway are associated (or correlated) with CONSOLIDATED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONSOLIDATED EDISON has no effect on the direction of Berkshire Hathaway i.e., Berkshire Hathaway and CONSOLIDATED go up and down completely randomly.
Pair Corralation between Berkshire Hathaway and CONSOLIDATED
Assuming the 90 days horizon Berkshire Hathaway is expected to generate 108.95 times less return on investment than CONSOLIDATED. But when comparing it to its historical volatility, Berkshire Hathaway is 120.38 times less risky than CONSOLIDATED. It trades about 0.11 of its potential returns per unit of risk. CONSOLIDATED EDISON N is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 8,933 in CONSOLIDATED EDISON N on August 31, 2024 and sell it today you would lose (568.00) from holding CONSOLIDATED EDISON N or give up 6.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 55.65% |
| Values | Daily Returns |
Berkshire Hathaway vs. CONSOLIDATED EDISON N
Performance |
| Timeline |
| Berkshire Hathaway |
| CONSOLIDATED EDISON |
Berkshire Hathaway and CONSOLIDATED Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Berkshire Hathaway and CONSOLIDATED
The main advantage of trading using opposite Berkshire Hathaway and CONSOLIDATED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berkshire Hathaway position performs unexpectedly, CONSOLIDATED can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in CONSOLIDATED will offset losses from the drop in CONSOLIDATED's long position.| Berkshire Hathaway vs. American International Group | Berkshire Hathaway vs. Sun Life Financial | Berkshire Hathaway vs. Arch Capital Group | Berkshire Hathaway vs. Hartford Financial Services |
| CONSOLIDATED vs. AEP TEX INC | CONSOLIDATED vs. US BANK NATIONAL | CONSOLIDATED vs. International Business Machines | CONSOLIDATED vs. Intel |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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